$14 Million in Funding to Propel Sustainable Aviation Fuel Development

A proposal for a facility that aims to convert agricultural waste into jet fuel has secured a $14 million (US$9.64 million) funding boost from state and federal governments.

Jet Zero Australia, the entity behind the initiative, announced the substantial funding on Sep. 27 following commitments from the Australian Renewable Energy Agency (ARENA) and the Queensland government to support the engineering necessary for constructing a plant in Townsville.

If the project proves viable, the refinery could potentially generate up to 102 million liters of sustainable aviation fuel (SAF) for commercial aircraft and 11 million liters of renewable diesel by 2027.

This announcement comes shortly after an important aviation event highlighted the urgent need for Australian governments to take action to prevent missing the opportunity to become a leading environmentally sustainable aviation hub.

The Jet Zero facility, also known as Project Ulysses, with a total value of $600 million (US$413 million), had previously secured a $30 million (US$20.65 million) investment from companies such as Qantas, Airbus, and Idemitsu Kosan, a Japanese oil company.

ARENA’s grant of $9 million (US$6.2 million) will help finance a front-end engineering and design study for the plant, explained Darren Miller, the chief executive, to determine the feasibility of constructing the facility.

“Given the abundant feedstocks and extensive renewable energy resources available, Australia is strategically positioned to produce the required sustainable aviation fuels within its borders,” noted Miller.

“We are committed to ensuring that the insights gleaned from Jet Zero Australia’s analysis are shared across the industry, paving the way for large-scale production in Australia,” he added.

The Queensland government also contributed $5 million (US$3.4 million) to the engineering study through its New Industry Development Strategy fund.

The engineering assessment is scheduled for completion by 2025, as per Ed Mason, the CEO of Jet Zero Australia, who mentioned that, if approved, the plant could commence operations in 2027.

“The successful establishment of Project Ulysses will enable us to harness the economic advantages of a local SAF sector for Australia,” Mason highlighted.

“Moreover, the project will enhance the country’s energy self-sufficiency by boosting the production of aviation fuel for both civilian and potentially military planes in a critical location like Townsville,” he further explained.

Sustainable aviation fuel can be derived from various agricultural by-products like sugarcane, tallow, canola, and cooking oils, with studies indicating an 80 percent reduction in carbon emissions from air travel.

The global demand for this eco-friendly fuel has surged, driven by major airlines committing to achieving net-zero emissions by 2050.

Despite numerous potential projects in Queensland and Western Australia, Australia has yet to establish a refinery dedicated to producing sustainable aviation fuel.

Stephen Forshaw, the chief representative of Airbus Australia, who in a prior CAPA Airline Leader Summit stressed the need for Australia to expedite its sustainable fuel efforts, hailed the investment.

“This level of government support is crucial for propelling the production of SAF in Australia, enabling businesses to progress towards commercial production,” Forshaw stated.

He expressed hope that the federal government would mandate local airlines to utilize sustainable aviation fuel manufactured domestically.

A report by Frontier Economics projected a local sustainable aviation fuel industry could create over 7,400 jobs and contribute $2.8 billion (US$1.93 billion) to Australia’s economy by 2030.